OECD Skills Studies OECD Skills Strategy Lithuania ASSESSMENT AND RECOMMENDATIONS OECD Skills Studies OECD Skills Strategy Lithuania ASSESSMENT AND RECOMMENDATIONS This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries. This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. Note by Turkey The information in this document with reference to “Cyprus” relates to the southern part of the Island. There is no single authority representing both Turkish and Greek Cypriot people on the Island. Turkey recognises the Turkish Republic of Northern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of the United Nations, Turkey shall preserve its position concerning the “Cyprus issue”. Note by all the European Union Member States of the OECD and the European Union The Republic of Cyprus is recognised by all members of the United Nations with the exception of Turkey. The information in this document relates to the area under the effective control of the Government of the Republic of Cyprus. Please cite this publication as: OECD (2021), OECD Skills Strategy Lithuania: Assessment and Recommendations, OECD Skills Studies, OECD Publishing, Paris, https://doi.org/10.1787/14deb088-en. ISBN 978-92-64-37281-8 (print) ISBN 978-92-64-42067-0 (pdf) ISBN 978-92-64-35792-1 (HTML) ISBN 978-92-64-83191-9 (epub) OECD Skills Studies ISSN 2307-8723 (print) ISSN 2307-8731 (online) Revised version, July 2021 Details of revisions available at: https://www.oecd.org/about/publishing/Corrigendum-notice-OECD-Skills-Strategy-Lithuania.pdf Photo credits: Cover © Roman Babakin/ Shutterstock.com and Studio Foltzer Corrigenda to publications may be found on line at: www.oecd.org/about/publishing/corrigenda.htm. © OECD 2021 The use of this work, whether digital or print, is governed by the Terms and Conditions to be found at http://www.oecd.org/termsandconditions. 3 Foreword Developing and using people’s skills effectively is crucial for Lithuania’s economic prosperity, innovation and social cohesion. Globalisation, digitalisation, demographic change and climate change are combining to increase and transform the skills needed to thrive in Lithuanian workplaces and society. People will need a stronger and more well-rounded set of skills, including cognitive, social and emotional, and job-specific skills, to flourish in life both in and outside of work. Lithuania will also need to make better use of people’s skills in the labour market and in individual workplaces to harness the potential of people’s skills. The COVID-19 crisis of 2020 has accelerated the digitalisation of learning and work, and made upskilling and reskilling even more critical for many adults. Lithuania has achieved relatively strong skills performance in various areas. In terms of developing people’s skills, participation rates in upper secondary and tertiary education are higher in Lithuania than in almost all other OECD countries. In terms of using people’s skills, Lithuania does a good job overall of activating skills in the labour market, with men and women having relatively high and equal employment rates. However, Lithuania faces several persistent skills challenges. Young people have comparatively low levels of cognitive and socio-emotional skills, and this has not improved over time. There remain large gaps in skill levels and educational attainment between youth from disadvantaged and advantaged backgrounds. Skills imbalances appear to be high, and many graduates are not well matched to their jobs. Many adults lack foundational skills such as literacy and numeracy, and relatively few adults participate in education and training. Employers are not using workers’ skills to their full potential to support productivity and innovation. In recent years, Lithuania has introduced various strategies and reforms covering different levels of education and training, and different areas of labour market and innovation policy. These have helped improve school and university networks, vocational education, teachers’ education and conditions, among other things. Today, Lithuania has a unique window of opportunity to build on these reforms to improve performance and equity across the skills system. Lithuania is in the process of developing several important medium- and long-term strategies that have a clear focus on skills. The OECD’s Skills Strategy project seeks to support Lithuania to seize this opportunity. It does this by providing detailed analysis and widespread engagement with stakeholders, leading to several tailored recommendations for Lithuania outlined in this report. The OECD stands ready to support Lithuania as it seeks to put skills at the forefront of its agenda for a more productive, innovative, green and equitable economy and society. OECD SKILLS STRATEGY LITHUANIA © OECD 2021 4 Acknowledgements This report is part of a series of country projects within the OECD programme of work on “Building Effective National Skills Strategies”. The OECD team wishes to thank the Lithuanian Steering Group for this project for its strategic oversight. As of October 2020 the Steering Group was chaired by Lukas Savickas, First Deputy Chancellor, Office of the Government of the Republic of Lithuania (LRV). The Steering Group included: Eglė Radišauskienė, Vice-minister, Ministry of Social Security and Labour (SADM); Arūnas Plikšnys, Vice-minister, Ministry of Education, Science and Sport (SMSM); Marius Skuodis, Vice-minister, Ministry of Economy and Innovation (EIM); Loreta Maskoliovienė, Vice-minister, Ministry of Finance (FINMIN); Giedrius Viliūnas, Managing Director, Government Strategic Analysis Center (STRATA); Jovita Pretzsch, Representative of Trade Unions, Tripartite Council; Janina Matuizienė, Representative of Trade Unions, Tripartite Council; Gintautas Kvietkauskas, Representative of Employers, Tripartite Council; Birutė Miškinienė, Representative of Employers, Vilnius Chamber of Commerce, Industry and Crafts; and Agnė Kavaliauskienė, Advisor to the Group of Strategic Competences (LRV). The OECD is grateful to the Lithuania National Project Team for its invaluable guidance and input throughout the project, and for convening participants and moderating discussions during virtual consultations. We are particularly grateful to the National Project Manager, Danguolė Kiznienė, STRATA, for her ongoing assistance and co-ordination. The National Project Team included, in alphabetical order: Agnė Kavaliauskienė, Advisor to the Group of Strategic Competences, LRV; Birutė Miškinienė, Representative of Employers, Vilnius Chamber of Commerce, Industry and Crafts; Eglė Došienė, Senior Advisor to the Youth Department, SADM; Emilis Ruželė, Representative of Employers, Tripartite Council; Gintautas Jakštas, Head of Higher Education Policy and Career Analysis Division (as of October 2020); Giedre Beleckienė, Policy Analyst, STRATA; Indrė Raubė, Advisor of the Division of Labour Market, SADM; Inga Liubertė, Advisor of the Division of Labour Market, SADM; Inga Veževičienė, Senior Officer of the Investment into the Growth of Economy Division, FINMIN; Janina Matuizienė, Representative of Trade Unions, Tripartite Council; Jovita Pretzsch, Representative of Trade Unions, Tripartite Council; Julius Jakučinskas, Director for Life Long Learning Department, SMSM; Jurga Šimkutė, Advisor of the Division of the Development of Human Resources, EIM; Linas Kadys, Head of the Development of Human Resources at the Department of Economic Development, EIM; Osvaldas Šmitas, Director for the Department of Economic Development, EIM; and Tomas Pūtys, Head of the Division of Non-formal Education, SMSM. Our warm thanks go to the many government and non-government representatives who generously shared their insights during the virtual workshops, expert meetings, regional meetings and bilateral meetings, and via written input. Special thanks go to the experts who provided feedback on draft sections of the report, namely: Arminas Varanauskas, Executive Director at Knowledge Economy Forum; Aurelija Valeikienė, Deputy Director, Centre for Quality Assessment in Higher Education; Rimantas Dumčius and Mantas Pupinis, experts from PPMI Group - Public Policy and Management Institute; Agnė Perednė, Vydūnas Trapinskas and Birutė Noreikaitė, experts from Invest Lithuania; Daina Kleponė, Managing Director of Enterprise Lithuania; Professor Dr. Margarita Teresevičienė, Vytautas Magnus University; OECD SKILLS STRATEGY LITHUANIA © OECD 2021 5 Dr. Laima Galkutė, Researcher at the Education Institute of Vytautas Magnus University, and Member of the Lithuanian National Commission of UNESCO; Professor Dr. Saulė Mačiukaitė-Žvinienė, President of the National Council of Education; Nora Skaburskienė, Director of the Higher Education Department of Vilnius Gediminas Technical University; Linas Leonas, Chairman of the Higher Education Assessment Committee, Centre for Quality Assessment and Higher Education; and Agnė Kudarauskienė, education expert representing the Lithuanian Confederation of Industrialists. Over 150 stakeholders participated in the various meetings that took place during the OECD’s virtual consultations. These stakeholders represented ministries, government agencies, subnational authorities, education and training institutions, businesses and business associations, unions and community associations, academia, civil society and other organisations (see Annex A for a full list of participating organisations). The OECD would also like to thank the staff of STRATA for their active outreach and communication with stakeholders, and for other support during the project. The OECD team is grateful to the Directorate-General for Employment, Social Affairs and Inclusion and the Directorate-General for Education and Culture of the European Commission for contributing both financial support and expertise throughout the project. We are especially grateful to Alison Crabb, Michael Horgan and Carlo Scatoli, as well as Arnoldas Pranckevičius. While the report draws upon data and analysis from the OECD, Lithuanian authorities and other published sources, any errors or misinterpretations remain the responsibility of the OECD team. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the OECD member countries nor the European Union. Ben Game (OECD Centre for Skills) was the OECD project leader responsible for co-ordinating the National Skills Strategy project in Lithuania. The authors of this report from the National Skills Strategy team of the OECD Centre for Skills were: Chapter 1. Key insights and recommendations (Ben Game, Bart Staats, Sam Thomas and Daniel Unterweger); Chapter 2. Equipping young people with skills for work and life (Ben Game); Chapter 3. Raising adults’ and enterprises’ participation in learning (Sam Thomas and Stefano Piano); Chapter 4. Strengthening the use of skills in Lithuanian workplaces (Bart Staats); and Chapter 5. Strengthening the governance of skills systems (Daniel Unterweger). Visionary Analytics (external consultants) provided research assistance, feedback and consultation assistance throughout the project. Marieke Vandeweyer (VET team, OECD Centre for Skills) and Romane Viennet (OECD Directorate for Education and Skills) provided feedback on draft sections of the report. As Head of the OECD National Skills Strategy team, Andrew Bell provided oversight, analytical guidance, comments on chapters and supervision. Stefano Scarpetta, Director of the OECD Directorate for Employment, Labour and Social Affairs, and Mark Pearson, Deputy Director of the OECD Directorate for Employment, Labour and Social Affairs, both provided strategic oversight for the project, as well as comments. Rasa Silyte-Niavas, Véronique Quénehen and Jennifer Cannon (OECD Centre for Skills) provided invaluable support for consultation, organisation, report layout and design, and publication planning. This report was copy-edited by Elizabeth Zachary (external editor). OECD SKILLS STRATEGY LITHUANIA © OECD 2021 6 Table of contents Foreword 3 Acknowledgements 4 Abbreviations and acronyms 10 Executive summary 12 1 Key insights and recommendations for Lithuania 15 Skills matter for Lithuania 16 The OECD Skills Strategy project in Lithuania 19 The performance of Lithuania’s skills system 20 The policy context in Lithuania 24 Priority areas and recommendations 26 References 35 Annex 1.A. Policy recommendations 37 Annex 1.B. The OECD Skills Strategy Dashboard 49 Annex 1.C. Strategies and recent reforms in Lithuania related to skills and education 52 2 Equipping young people in Lithuania with skills for work and life 54 The importance of equipping young people with skills for work and life 55 Overview and performance of young people’s skills development in Lithuania 57 Opportunities to better equip young people with skills for work and life 66 Summary of policy recommendations 104 References 105 Notes 113 3 Raising adults’ and enterprises’ participation in learning in Lithuania 114 The importance of raising adults’ and enterprises’ participation in learning 115 Overview and performance of Lithuania’s adult learning system 116 Opportunities to raise adults’ and enterprises’ participation in learning 123 Summary of policy recommendations 150 References 151 4 Using people’s skills more effectively in Lithuania’s workplaces 159 The importance of using people’s skills more effectively in Lithuania’s workplaces 160 Overview and performance of skills use in Lithuania 162 Opportunities to use people’s skills more effectively in Lithuanian workplaces 169 OECD SKILLS STRATEGY LITHUANIA © OECD 2021 7 Summary of policy recommendations 197 References 198 5 Strengthening the governance of skills policies in Lithuania 204 The importance of strengthening the governance of Lithuania’s skills system 205 Overview and performance of Lithuania’s skills governance 206 Opportunities to strengthen the governance of Lithuania’s skills policies 215 Summary of policy recommendations 248 References 249 Notes 254 Annex A. Engagement 255 FIGURES Figure 1.1. Cross-country variation in job automatability in selected countries 17 Figure 1.2. The OECD Skills Strategy Framework 20 Figure 1.3. OECD Skills Strategy Dashboard: Lithuania and selected European countries 21 Figure 1.4. Lithuania’s performance on key indicators for developing relevant skills 22 Figure 1.5. Lithuania’s performance on key indicators for using skills effectively 23 Figure 1.6. Scope and focus of the OECD Skills Strategy Lithuania 26 Figure 2.1. Completion rate of upper secondary education, by programme orientation (2018) 60 Figure 2.2. Students who are not top performers, PISA 2018 63 Figure 2.3. Young tertiary graduates experiencing field-of-study mismatch, by field, 2019 65 Figure 2.4. Differences in young people’s participation in non-formal education and training, selection of municipalities, 2018-19 74 Figure 2.5. Lower secondary teachers’ statutory salaries at different points in teachers' careers (2019) 81 Figure 3.1 Participation in adult learning and labour productivity 116 Figure 3.2. Distribution of non-formal education and training activities by provider 119 Figure 3.3. Participation rate in adult learning in Lithuania and other countries 120 Figure 3.4. Participation rate in formal and non-formal education and training for different demographic characteristics 121 Figure 3.5. Motivation to participate in adult learning and training 122 Figure 3.6. Training provision and intensity in Lithuania and other countries 123 Figure 3.7. Sources used by adults for information on adult education and training 125 Figure 3.8. Percentage of adults seeking information on adult education and training 126 Figure 3.9. Assessment of training needs and prevalence of training plans among firms in Lithuania and the EU 129 Figure 3.10. Barriers to the provision of training for enterprises 131 Figure 3.11. Barriers to participation in adult learning for individuals 132 Figure 3.12. Sources of funding for low- and high-skilled adults in employment undertaking learning opportunities 137 Figure 3.13. Barriers to recognising prior learning for local PES 144 Figure 3.14. Percentage who found education and training useful for their job 148 Figure 4.1. Correlations between skills use, productivity and the adoption of high-performance workplace practices (HPWP) in OECD countries 160 Figure 4.2. Skills use indicators, by type of skill, 2012, 2015, 2018 165 Figure 4.3. HPWP related to employee engagement and autonomy, 2019 166 Figure 4.4. Share of workforce in occupations characterised by high value-added activities, 2018 168 Figure 4.5. Share of managers with low literacy and/or numeracy, 2012, 2015, 2018 180 Figure 4.6. Participation by managers in formal and/or non-formal training, 2012, 2015, 2018 186 Figure 4.7. Share of employers indicating that their employees are very motivated, 2019 190 Figure 4.8. Information-processing skills used at work, private-public sector differences, 2012, 2015, 2018 194 Figure 5.1. The four pillars for strengthening the governance of skills policies 205 Figure 5.2. Lithuania’s performance regarding inter-ministerial co-ordination 211 Figure 5.3. Lithuania’s performance regarding stakeholder engagement 212 OECD SKILLS STRATEGY LITHUANIA © OECD 2021 8 Figure 5.4. Lithuania’s performance regarding using evidence in policy making 214 Figure 5.5. Primary, secondary and post-secondary non-tertiary expenditure on educational institutions per full-time equivalent student 215 Figure 5.6. Potential structure of new governance arrangements for skills policy in Lithuania 218 Figure 5.7. Advantaged/disadvantaged schools where one or more dedicated counsellor provides career guidance 233 Figure 5.8. Communication with career counsellors/career guidance specialists according to age 234 Figure 5.9. Public expenditure on education as a percentage of GDP (2018) 239 Figure 5.10. Average annual growth in total expenditure on primary to tertiary educational institutions per full- time equivalent student, 2012-2017 240 Figure 5.11. Ratio of students to teaching staff in upper secondary education, by programme orientation, 2018 242 Figure 5.12. Share of EU-ESIF contributions in the funding of lifelong learning 245 TABLES Table 2.1. Lithuania’s strategic goals for young people’s skills 56 Table 2.2. Lithuanian government and stakeholder bodies responsible for young people’s skills 57 Table 2.3. Institutions providing formal and non-formal education in Lithuania (2019) 59 Table 2.4. Enrolment in ITE programmes, universities and colleges 79 Table 2.5. Offered and unfilled state-funded places, by field of education, 2019/20 95 Table 2.6. Student basket (public subsidy per student), by field of education, 2020/21 96 Table 3.1. Lithuania’s strategic goals related to adult learning 117 Table 3.2. Principle actors in the adult learning system 118 Table 3.3. Online portals with information about adult learning opportunities in Lithuania 126 Table 3.4. Main financial incentives for employers undertaking adult learning in Lithuania 133 Table 3.5. Mechanisms to increase employer engagement in skills policies 134 Table 3.6. Main financial incentives in Lithuania for individuals undertaking adult learning 138 Table 3.7. Financial incentives for individuals to participate in adult learning opportunities 139 Table 4.1. Lithuania’s strategic goals related to skills use 163 Table 4.2. Government agencies with responsibilities for the provision of business support 164 Table 4.3. Business support programmes in Lithuania 170 Table 5.1. Main high-level governmental actors in skills policy in Lithuania 207 Table 5.2. Subnational levels of government responsible for skills policies 208 Table 5.3. Advantages and disadvantages of forecast and foresight methods and tools 229 Annex Table 1.A.1. Policy recommendations for successfully implementing and complementing modern curricula 37 Annex Table 1.A.2. Policy recommendations for strengthening Lithuania’s teaching workforce 38 Annex Table 1.A.3. Policy recommendations for making vocational and higher education more responsive labour market needs 39 Annex Table 1.A.4. Policy recommendations for raising awareness about adult learning benefits and opportunities 40 Annex Table 1.A.5. Policy recommendations for removing barriers to participation in adult learning 41 Annex Table 1.A.6. Policy recommendations for strengthening the recognition and quality of non-formal adult education and training 41 Annex Table 1.A.7. Policy recommendations for enhancing the use of skills by supporting businesses to adopt HPWP 42 Annex Table 1.A.8. Policy recommendations for strengthening management and leadership skills to drive the transformation of workplaces 43 Annex Table 1.A.9. Policy recommendations for empowering and engaging the workforce to make better use of their skills 44 Annex Table 1.A.10. Policy recommendations for increasing the capacity and co-ordination of governmental and non-governmental actors across the skills system 45 Annex Table 1.A.11. Policy recommendations for enhancing skills information and career guidance systems and practices 46 Annex Table 1.A.12. Policy recommendations for ensuring sustainable, well-targeted, and shared financing of Lithuania’s skills system 47 OECD SKILLS STRATEGY LITHUANIA © OECD 2021